Park District Name

[PARK DISTRICT NAME]

[COUNTY NAME] COUNTY

Park District

AOS Regulatory Basis Footnote Shell

Revised December2017

Note: This shell is a guide for preparing your annual footnotes to the financial statements when filed on the AOS Regulatory Basis. These footnotes are not all inclusive and might include disclosures not applicable to your particular District. Modify, delete, or add additional disclosures as necessary. As an example: If your entity has joint ventures, related organizations, or jointly governed organizations pull in the applicable footnotes from the AOS Regulatory Basis Generic Special Purpose Government Notes Shell.
Items highlighted in yellow are provided for guidance purposes only and should be deleted prior to submission.
See GASB Codification 2300 – Notes to the Financial Statements. As communicated in paragraph .102, the notes to the financial statements should communicate information essential for fair presentation of the basic financial statements that is not displayed on the face of the financial statements. As such, the notes form an integral part of the basic financial statements. Notes should focus on the primary government—specifically, its governmental activities, business-type activities, major funds, and nonmajor funds in the aggregate. Information about the government's discretely presented component units should be presented as discussed inparagraph .105.
Items highlighted in green are items that are generic, and should be reviewed for entity specific information and modified to report specifics for your district.
In this sample 20CY means current year and 20PY means prior year and would be replaced with the four digit current year (for example 2017) or four digit prior year (for example 2016).

XYZ Park District

ABC County

Notes to the Financial Statements

For the Year Ended December 31, 20CY

Note 1 – Reporting Entity

[Modify as needed.]

The XYZ Park District (the District), ABC County, is a body politic and corporate established to exercise the rights and privileges conveyed to it by the constitution and laws of the State of Ohio. The probate judge of ABC County appoints a three-member Board of Commissioners to govern the District. The Commissioners are authorized to acquire, develop, protect, maintain, and improve park lands and facilities. The Commissioners may convert acquired land into forest reserves. The Commissioners are also responsible for activities related to conserving natural resources, including streams, lakes, submerged lands, and swamp lands. The Board may also create parks, parkways, and other reservations and may afforest, develop, improve and protect and promote the use of these assets conducive to the general welfare.

(Insert the following, if applicable.) The [Name of Foundation] is also associated with the District. Since the Foundation’s tax exemption is based on the Foundation’s intent to support the District, its financial statements are included in this report. [Consult your Legal Counsel if unsure as to the inclusion of the Foundation portion of the footnote.]

Note: The above foundation note is only an example.
1) Use GASB Cod. 2100 and 2600 to determine if another entity is or is not a component unit.
2) If a component unit(s) exists, the Library should disclose it using any of the following presentations:
a) Discrete presentation (this obviously requires obtaining financial statements from the CU):
b) When a CU follows GAAP, the AICPA has advised it is improper to include GAAP and non-GAAP presentations together. Therefore, the Library wishes to include CU statements using another accounting basis, present them in a separate section of the report.
c) Include footnote disclosure that a CU exists, and how audited CU statements can be obtained (assuming the CU was audited). Briefly disclose why the entity is deemed a CU, based on the criteria in GASB 14/39/61 (GASB Cod. 2100). Indicate the [Foundation] exists solely to support the library (if this is true and they don’t also support another organization too), they have unaudited net assets of $XX,XXX and describe who decides how to spend [Foundation’s] money. No other financial information is required.
Item 2(c) above is sufficient to satisfy disclosure requirements for cash basis entities with component unit.

The District’s management believes these financial statements present all activities for which the District is financially accountable. [Continue with the following, if applicable. Otherwise delete the rest of this paragraph.], except the financial statements do not include debt service funds external custodians maintain. Note XX to the financial statement describes these assets. [<modify note # as necessary.].

Should your District participate in jointly governed organizations, joint ventures and/or public entity risk pools or is associated with related organizations, you should identify the specific types of organizations. A description of the organizations should be included later in the notes. The Generic Special Purpose Government Notes shell Note 1 can be used as an example for wording. See Also Notes 14, 15, 16 and 17 for assistance with the descriptions of the organizations. You can cut and paste into this example.

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation

(Delete all unnecessary / inapplicable fund types)

The District’s financial statements consist of a combined statement of receipts, disbursements and changes in fund balances (regulatory cash basis) for all governmental fund types which are organized on a fund type basis.

Fund Accounting

[Review GASB Codification 1300, Fund Accounting, paragraphs .104-.114 for guidance.]

The District uses funds to maintain its financial records during the year. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts. The funds of the District are presented below:

[Delete all unnecessary / inapplicable fund types.]

Should your District establish a proprietary or fiduciary fund, including agency funds, you should insert the appropriate fund type descriptions and make any other necessary footnote and financial statement modifications. The Generic Special Purpose District Notes shell is an example that can be used and you can cut and paste into this example.

General FundThe General Fund accounts for and reports all financial resources not accounted for and reported in another fund. The general fund balance is available to the District for any purpose provided it is expended or transferred according to the general laws of Ohio.

Special Revenue Funds These funds account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. The District had the following significant Special Revenue Funds: [Include a one or two sentence description of any special revenue fund constituting at least 20 percent of combined special revenue disbursements or deemed significant by the District. The following is an example that must be modified.]

Debt Service FundsThese funds account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest. The District had the following significant Debt Service Funds: [Include a one or two sentence description of any debt service funds constituting at least 20 percent of combined debt service fund disbursements or deemed significant by the District.]

Capital Project FundsThese funds account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. The District had the following significant capital project funds: [Include a one or two sentence description of any capital project funds constituting at least 20 percent of combined capital project disbursements or deemed significant by the District.]

Permanent FundsThese funds account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government's programs (for the benefit of the government or its citizenry). The District had the following significant permanent fund: [Include a one or two sentence description of any permanent funds constituting at least 20% of combined permanent fund disbursements or other funds deemed significant by the District.]

Private-Purpose Trust Funds Private-purpose trust funds account for assets held under a trust agreement for individuals, private organizations, or other governments which are not available to support the District’s own programs.

The District’s private purpose trust fund(s) are for the benefit of certain individuals, a non-profit organization and the District of X. (<Modify as needed. Omit ¶ if there are none).

[Note: classifying private purpose funds requires judgment. If the intent generally benefits the District’s own programs, permanent or special revenue fund classification is appropriate. However, if the intent is to benefit a specific individual, private organization or another government which is not available to support the District’s own programs, trust fund classification is more appropriate. See Bulletin 2005-05 for additional classification guidance.]

Basis of Accounting

These financial statements follow the accounting basis permitted by the financial reporting provisions of Ohio Revised Code Section 117.38 and Ohio Administrative Code Section 117-2-03(D). This basis is similar to the cash receipts and disbursements accounting basis. The Board recognizes receipts when received in cash rather than when earned, and recognizes disbursements when paid rather than when a liability is incurred. Budgetary presentations report budgetary expenditures when a commitment is made (i.e., when an encumbrance is approved).

These statements include adequate disclosure of material matters, as the financial reporting provisions of Ohio Revised Code Section 117.38 and Ohio Administrative Code Section 117-2-03(D) permit.

Budgetary Process

The Ohio Revised Code requires that each fund (except certain agency funds) [Delete the preceding parenthetical reference if there are no unbudgeted agency funds.] be budgeted annually.

AppropriationsBudgetary expenditures (that is, disbursements and encumbrances) may not exceed appropriations at the fund, function or object level of control [Modify to reflect the legal level of control as approved by the District.], and appropriations may not exceed estimated resources. The District Board must annually approve appropriation measures and subsequent amendments. Unencumbered appropriations lapse at year end. [Delete the word “unencumbered”, if there were no encumbrances outstanding at year end.]

Estimated ResourcesEstimated resources include estimates of cash to be received (budgeted receipts) plus unencumbered cash as of January 1. [Delete "unencumbered" in the preceding sentence if the District had no encumbrances at year end.] The County Budget Commission must approve estimated resources.

EncumbrancesThe Ohio Revised Code requires the District to reserve (encumber) appropriations when individual commitments are made. Encumbrances outstanding at year end are carried over, and need not be reappropriated. [Replace the preceding sentence with the following only if encumbrances are canceled at year end.] Encumbrances outstanding at year end are canceled, and reappropriated in the subsequent year. [Include, or modify the following sentences as necessary.]. The District did not use the encumbrance method of accounting. [or] The District did not encumber all commitments required by Ohio law. [If your auditors propose material adjustments to your budgetary disclosures during the audit, they may request you revise this note to include the following sentence.] Management has included audit adjustments in the accompanying budgetary presentations for material items that should have been encumbered.

A summary of 20CY budgetary activity appears in Note 4. [Modify footnote reference if after completion the footnote number changes.]

Deposit and Investments

[Include the following paragraph if the County Auditor and Treasurer act as fiscal officer and custodian for your District.]

As the Ohio Revised Code permits, the ABC County Treasurer holds the District’s deposits as the District’s custodian. The County holds the District’s assets in its investment pool, valued at the Treasurer’s reported carrying amount.

OR

[Include the following 2 paragraphs if the County Auditor and Treasurer are not the fiscal officer and custodian for your District.]

The District’s accounting basis includes investments as assets. This basis does not record disbursements for investment purchases or receipts for investment sales. This basis records gains or losses at the time of sale as receipts or disbursements, respectively.

The District values U.S. Treasury Notes and common stock at cost [or fair value when donated].[<DELETE IF NO DONATED INVESTMENTS.]. Money market mutual funds are recorded at share values the mutual funds report. Investment in STAR Ohio is measured at the net asset value (NAV) per share provided by STAR Ohio. The NAV per share is calculated on an amortized cost basis that provides an NAV per share that approximates fair value.Modify this note as needed. Only describe investments actually held during the fiscal year. Equity securities (stock) are normally illegal, unless donated. Consult with your Legal Counsel if in doubt about an investment’s legality. Also, if equity securities have an impaired value deemed “other than temporary,” write them down to fair value.]

Capital Assets

The District records disbursements for acquisitions of property, plant, and equipment when paid. The accompanying financial statements do not report these items as assets. [Delete this footnote if the Entity does not own any Capital Assets.]

Accumulated Leave

In certain circumstances, such as upon leaving employment, employees are entitled to cash payments for unused leave. The financial statements do not include a liability for unpaid leave. [Delete this note if no employees are entitled to these benefits.]

Fund Balance

[Review GASB 54, Fund Balance Disclosures, paragraphs 5-23 and GASB Codification 1800, Classification and Terminology, paragraph .183, for guidance.]

Fund balance is divided into five classifications based primarily on the extent to which the District must observe constraints imposed upon the use of its governmental-fund resources. The classifications are as follows:

NonspendableThe District classifies assets as nonspendable when legally or contractually required to maintain the amounts intact.

RestrictedFund balance is restricted when constraints placed on the use of resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or is imposed by law through constitutional provisions.

CommittedCommissioners can commit amounts via formal action (resolution). The District must adhere to these commitments unless the Commissioners amend the resolution. Committed fund balance also incorporates contractual obligations to the extent that existing resources in the fund have been specifically committed to satisfy contractual requirements.

AssignedAssigned fund balances are intended for specific purposes but do not meet the criteria to be classified as restricted or committed. Governmental funds other than the general fund report all fund balances as assigned unless they are restricted or committed. In the general fund, assigned amounts represent intended uses established by DistrictCommissioners or a District official delegated that authority by resolution, or by State Statute.

UnassignedUnassigned fund balance is the residual classification for the general fund and includes amounts not included in the other classifications. In other governmental funds, the unassigned classification is used only to report a deficit balance.

The District applies restricted resources first when expenditures are incurred for purposes for which either restricted or unrestricted (committed, assigned, and unassigned) amounts are available. Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.

Note 3 – Compliance

Disclose any material budgetary violations here. The description should list the individual funds affected (i.e., not “the special revenue funds were in violation,” unless all the special revenue funds violated a requirement). The disclosures here should be brief. For example:

Contrary to Ohio law, budgetary expenditures exceeded appropriation authority in the ABC fund by $XXX for the year ended December 31, 20CY. Also contrary to Ohio law, at December 31, 20CY, the XYZ fund had a cash deficit balance of $XXX.

Note 4 –Budgetary Activity

Budgetary activity for the year ending [End of Year Audited] follows:

(Note: The above is an embedded Excel Spreadsheet. Double-click to edit. Do not enter $ signs.)

(Insert the following in the above tables:

• Budgetary Receipts from the Certificate of Estimated Revenues (Total Available Resources less Unencumbered Fund Balance).
• Actual Receipts from the Financial Statements
• Appropriation Authority from the approved Appropriation Resolution and any amendments made during the period plus Prior Year Carryover Encumbrances.
• Budgetary Expenditures from the Financial Statements plus Outstanding Encumbrances at Year End.)

Note 5 – Deposits and Investments

[Include the following footnote if the County Auditor and Treasurer do not act as fiscal officer and custodian for your District.]

The District maintains a deposit and investments pool all funds use. The Ohio Revised Code prescribes allowable deposits and investments. The carrying amount of deposits and investments at December 31 was as follows: